AG Barr sales boosted by energy drinks

AG Barr sales have risen 5pc in the last three months, with a “step change” in the performance of Rockstar, its energy drink.

Barr (A.G.)

Consumer demand for energy drinks such as Red Bull is rising, particularly among students and young people, and AG Barr promotes Rockstar as the “world’s most powerful energy drink”.

Analysts at Canaccord said that Rockstar achieved “double-digit” sales growth, as did Jamaican-style soft drink Ka and canned exotic fruit juice Rubicon. Irn-Bru recorded “resilient low to mid single-digit growth”, according to the analysts.

AG Barr declined to confirm the performance of its brands because of legal restrictions on the company’s reporting as it awaits regulatory approval for a merger with rival Britvic.

The Office of Fair Trading is examining the deal and is scheduled to announce its decision on February 13.

Shares in Britvic rose by 4pc, while AG Barr increased 20, or 4pc, to 540p. AG Barr said its performing ahead of the drinks market and revenues in the year to January 26 should rise 7pc to £253m.

The company said: “AG Barr has delivered a robust performance in a marketplace impacted by the combination of very poor summer weather and the ongoing economic challenges faced by consumer goods companies, notably raw material cost pressures and inconsistent consumer demand.”